PM’s Net to Catch Property Gains Not the Key

PM’s Net to Catch Property Gains Not the Key – a Motor
Home Could Drive through It

The Prime Minister’s
solution for housing speculation is not the key but a
pittance and completely ignores the issue of offshore
purchases of New Zealand land and massive immigration, says
New Zealand First.

His statement “we don’t always have
good information about them” just about sums up his
approach, says New First Leader Rt Hon Winston Peters.

“New Zealand First’s house and land register bill has
been around for years.

“Mr Key scoffed at the idea,
which is common sense in other countries but apparently not
to him. Accordingly, his recent Damascus experience should
be seen for what it is – a weak attempt to deal with a
major problem.

“A close examination of Key’s
announcement shows how weak it is. For example:

•
Offshore land banking in New Zealand is allowed.

•
Offshore purchasing of homes to rent to New Zealanders is
allowed.

• The two-year rule, ironically called
the ‘bright line’, is a joke. Expect the Companies
Office to receive a torrent of applications for new property
companies all in the name of virtually anonymous offshore
property investors.

• The past rash of offshore
buying of multiple homes and farms will not be touched
because the changes take place after October 1 this year.

• In the context of addressing past mistakes,
National is doing nothing.

“National’s grasp of
capitalist thinking – ‘the law of supply and demand’
– is woeful. Under present settings, Auckland needs
13,000 new houses a year. Housing consents, not even new
houses, have run at less than half of that in the last 4
years.

“Further fuelling housing demand is record
immigration at over 56,000 per year, over half going to
Auckland. The demand for housing in Auckland is more than
twice the supply required to meet housing of new immigrants
to Auckland, let alone New Zealanders wanting new homes in
Auckland.

“Auckland house
prices will climb before the inevitable property bubble
burst.

“Mr Key and foreign-owned banks are on the horns
of their own dilemma. The bubble can’t last. They
can’t avoid the dire results of house price deflation and
hundreds of thousands losing most, if not all of their
equity, in over-priced homes.

“Mr Key’s residential
property gains net is so full of holes one could drive a
motor home through it. In short, National’s response to
Auckland’s housing crisis is one more self-induced
failure,” says Mr
Peters.

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